Senior leaders from across the UK’s built environment sector share their reactions to the government’s Autumn Statement with FM Magazine.
Environment
Gavin Graveson, CEO Veolia UK & Ireland, says: “This was a missed opportunity for the Government to unlock investment in the UK’s circular economy and deliver green growth, jobs and infrastructure.
“It is extremely disappointing that the Government has neglected to make any meaningful increase to the Plastic Packaging Tax (PPT), something the industry has made repeated requests for. By not increasing the PPT to £500p/t with a 50% mandatory recycled content threshold, the Government is seriously risking the investment needed for crucial domestic recycling infrastructure, providing green growth and green jobs.”
“We welcome the clarity that the Landfill Tax will remain as two separate rates, and that the Government has listened to industry concerns, but this alone will not solve the billion pound scourge of waste crime in this country. While sense over the rates has prevailed, we need a realistic plan to urgently tackle organised gangs undermining the legitimate operators.”
Fernando de la Cruz Quintanilla, EMEA New Markets Director at global leader in climate control, Airzone, says:
“The chancellor’s Autumn budget rightly prioritises reducing household energy bills, which is a welcome step forward in combatting the ongoing cost-of-living crisis. However, this short-term measure comes at a significant cost. Cutting green levies will ultimately slow progress toward the UK’s long-term carbon reduction goals, further delaying the transition to cleaner heating solutions such as heat pumps and other clean energy heating options. There is also concern that electricity is being made more expensive than gas, which could undermine the financial incentives for households to switch to more energy efficient electric heating.
“Striking a careful balance between immediate affordability and long-term environmental priorities will be vital to ensure households can manage their energy costs today without the government compromising on the UK’s shift to a more sustainable future.”
Construction & Social Housing
Dr David Crosthwaite, chief economist at BCIS, says: “There’s little in this Budget for the construction sector.
“Plus points include £900 million additional capital for the Lower Thames Crossing scheme, free training for under-25 apprentices for SMEs, and steadfastness on Spending Review investments in infrastructure and housing.
“Yet the Chancellor’s celebration of the government’s planning overhaul to ‘get Britain building’ seemed misplaced.
“Construction output and housebuilding data tell another story – one of slow demand and a shrinking workforce.
“The Chancellor called private investment the lifeblood of economic growth. But as we found out first from the OBR’s leak, the threshold for employer National Insurance contributions (NICs) will freeze from 2028-29 and NICs will be charged on salary-sacrificed pension contributions.
“Will this government ever learn from the unintended consequences of its policies?
“Increasing the cost of doing business is likely to be inflationary.
“Higher costs will inevitably be passed on, placing further upward pressure on tender prices and reducing firms’ ability to hire.
“This could pile on more friction at a time when construction activity is already fragile.
“The above-inflation rise in the minimum wage for young people is also not as shiny as it sounds.
“It assumes that economic conditions are conducive for businesses to increase recruitment.
“That’s not currently the case, as evidenced by the high unemployment rate.
“For construction, already faced with chronic labour gaps and rocky investor confidence, this Budget might create more issues than it solves.
Property Tax, ISAs, Devolution
Craig Hughes, Partner and Head of Private Client Services at Menzies LLP, comments: “Although this measure is expected to generate an additional £0.5bn, it risks further distorting the property market and represents yet another setback for landlords and the wider rental sector. It is important to recognise that the rental market provides essential housing for many working individuals who cannot yet afford to buy a home. Repeatedly targeting landlords through tax adjustments may encourage them to exit the market, reducing the supply of rental properties and, in turn, driving up rents for tenants.
Ultimately, the additional tax revenue is relatively modest, and the long-term impact is likely to fall not on landlords, but on the very people who rely on the rental sector for affordable housing.”
Mansion Tax (the government announced today that from April 2028, owners of properties valued at over £2m based on 2026 prices will be liable for a recurring annual charge which will be additional to existing council tax).
Craig Hughes, Partner and Head of Private Client Services at Menzies LLP, comments: “While this measure is projected to raise approximately £0.4bn in 2029-30, it introduces further complexity into the property market and may have unintended consequences for homeowners and the wider economy. High-value properties often form part of long-term financial planning, and repeated changes to the tax regime create uncertainty for both current owners and prospective buyers. This uncertainty risks discouraging investment, which could slow activity in the upper tiers of the housing market.
The revenue generated is modest relative to the overall tax base, and yet the broader economic effects – such as reduced mobility, increased transactional friction, and potential downward pressure on property values – may ultimately outweigh the fiscal benefit. In the long run, the burden of this policy is likely to extend beyond affluent homeowners and could indirectly affect the entire housing market.”
Prasam Patel, Managing Director at Alvarez & Marsal Tax, says: “Another unwelcome change to the taxation of the property sector was introduced in the Budget. As one of the sectors that has undergone over a decade of largely negative tax changes, it was disappointing to see an additional 2% tax being levied on property income at the basic, higher and additional rates for individuals. Private landlords, many of whom make an economic loss due to limits on relief for financing, have been targeted yet again.
From a broader investment perspective, pending further detail, it seems likely that the 2% would also flow through to additional withholding tax on Property Income Distributions paid by REITs. This would impact those who invest via such vehicles as well as individuals getting exposure to property income via listed REITs.”
Andrew Teacher, co-founder at Lauder Teacher, a real estate advisory firm, says: “The long-trailed mansion tax may play to the gallery, but bypassing the opportunity to overhaul a deeply outdated council-tax framework is a major missed opportunity.”
“There is a rational argument for taxing underoccupied high-value homes to incentivise downsizing, but without coordinated tax and planning policy this will not happen. If government genuinely wanted to support downsizers it would reduce stamp duty on final homes and introduce incentives for senior living.”
“The levy only applies above £2 million yet ignores that many affluent households already underpay council tax relative to asset value. It also overlooks the reality that social care and early-years funding gaps are most acute at local authority level. Token handouts for libraries and playgrounds will achieve little when billions of pounds in unspent Section 106 receipts remain unused.”
Council tax
“Had the government not wasted political capital on internal disputes, it could have used its majority to undertake long-overdue reform to council tax and business rates.”
“A full revaluation is more than 30 years overdue. It is dispiriting that ministers continue to avoid the structural changes required.”
Pensions and ISAs
“Taxing pension contributions is fundamentally inconsistent with the stated aim of increasing institutional investment into property and infrastructure.”
“Similarly, adding complexity to ISAs weakens confidence and discourages saving. A generation will enter mid-life without the housing wealth held by boomers, fuelled by cheap entry pricing and QE-driven asset inflation.”
“It beggars belief that government still refuses to provide certainty on savings and investment policy, despite repeated warnings from business and industry.”
Devolution
“Devolving fiscal authority to mayors is sound in principle only if funding is directed into interventions capable of driving real economic outcomes.”
“Enhanced mass transit in Sheffield, Leeds and other regional cities would materially improve development capacity, inward investment and productivity.”
“However, devolved authorities must have the capability to allocate capital effectively, and the scale of funding must be meaningful rather than symbolic.”
Planning
“Once again there are warm words on planning capacity but no resource behind it. Growth cannot be driven through planning reform when local authorities lack planners to deliver decisions.”
“Reform alone will not clear the backlog when development remains constrained by accumulated regulation and compounding taxation.”
“Until planning departments are properly resourced, delivery will remain blocked regardless of policy rhetoric.”
Property Investment
Daniel Austin, CEO and co-founder at ASK Partners, says:
Mansion tax
“The Mansion Tax announced in today’s Budget will likely soften demand for higher-end homes, especially those near the £2 million threshold where the impact is greatest. While the super-prime market may absorb the charge, the wider upper tier can expect renewed price pressure and slower growth. We may see a brief pre-implementation rush, but just as many owners could delay selling to avoid the levy, reducing turnover and constraining supply. The burden will fall hardest on asset-rich, cash-poor households in high-value areas such as London.
“It is disappointing that stamp duty reform was overlooked. As one of the biggest barriers to market mobility, leaving it untouched will continue to create friction in an already subdued market. The OBR’s downgraded growth forecasts, as a result of the budget, prove that supporting transactions should have been central to today’s package.”
Infrastructure and investor sentiment
“On a more positive note, renewed funding for the Lower Thames Crossing signals intent to push ahead with major infrastructure. Such projects typically bolster confidence among developers, investors and buyers. Over time, improved connectivity should lift demand, and eventually values, across parts of east and south-east London.”
Capital flows and residential investment
“Rather than driving capital out, the Budget is more likely to redirect it within UK housing. Foreign, institutional and private-credit investors are expected to continue favouring mid-market, income-led residential assets, build-to-rent, PBSA, single-family rental, affordable and suburban schemes, while relying more heavily on credit strategies as banks remain cautious.”
ISA allowance reduction
“The cut to ISA allowances is another unwelcome development. Cash ISAs are central to how aspiring buyers save, and a lower limit makes deposit-building even harder. It may also reduce low-cost funding for building societies and smaller lenders, tightening mortgage availability. At a time when the market needs more mobility and higher transaction volumes, this risks suppressing demand, delaying first-time buyer activity and adding friction to an already subdued market.”
Retail & Hospitality Sector
Michael Shapiro, Commercial Property partner at law firm Spencer West LLP, says: “It’s evident this is a “political” budget without producing anything to stimulate the mantra of “growth, growth, growth.”
“Despite lowering business rates for many retail and hospitality businesses through higher rates on warehouses used by online retail companies, the fact remains that the local high street has many empty retail and hospitality premises.
“Speaking with many commercial landlords and tenants which make up my client base, the main driver is the level of business rates, and the way that the business rating system works.
“While an overhaul is scheduled for April 2026, this is something that needs to be addressed with urgency. Hospitality and retail businesses continue to struggle through the current system, which is further compounded by the rise in NI in the last Budget and the incoming rise to the minimum wage in January.
“The domino effect of this on retail and hospitality workers, builders, and tradespeople cannot be underestimated, and the impact is clear to see by walking along any high street.”
Staff Reporter
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FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.
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